In July 2024, Nigeria saw a decrease in active Internet Service Providers (ISPs) to 242 from 252 in May 2024, reported by the Nigerian Communication Commission (NCC).
Despite new licenses issued to two companies on July 1, 12 ISPs did not renew their licenses and consequently exited the market in the past three months.
Each license costs ₦500,000 and lasts for five years, which has become a financial burden for many operators.
The NCC expressed concern over this trend, leading to a decline in active ISPs.
Besides financial issues, ISPs face challenges such as industry practices limiting competition, inadequate spectrum, expensive bandwidth, high Right of Way costs, and poor corporate governance.
Competition with major mobile operators like MTN, Airtel, Globacom, and 9mobile, who also provide Internet services, has intensified.
The launch of 5G by these operators has prompted some business customers to switch to 5G services.
Mobile operators continue to dominate the market, with 163.8 million active internet subscriptions in Q1 2024, compared to 262,206 for the leading ISPs.
